VCE Business Management 3-4 Unit 4 Human Resource Management

The Human Resource Management Function Management of people within the employer-employee relationship Purpose is to achieve organizational strategic business objectives while satisfying employee individual needs

Historical Perspective Until the mid 1970’s, HR was seen as administrative. Looked after records, payroll, leave Line managers and supervisors generally did recruiting, selecting, training From the mid 1990’s, moved to a more professional approach Increased emphasis on strategy Senior management representation Contemporary view HR has equal status to other functional areas of business (I.e. finance, marketing) HR ahs equal status to operational areas A greater role in recruiting, selecting, training, compensation, motivation and appraisal

Role of HR Manager Interpret business strategy to HR needs Develop HR strategies Create policies which link to corporate strategic planning Involved in long term planning Management of employment cycle New strategies and innovation in performance appraisal, skill development, remuneration Advocate for employees with management Strategies to motivate, increase job satisfaction, productivity Act as a change agent Support and educate line managers

HR Function Often referred to as Staff Managers Don’t decide on work to be done day to day. Act as advisers and support network Needs to consider internal and external environment influences Need to set objectives which fit the overall business objectives and strategy Note diagram on p. 190 Do 11.2 using three HR Ads handed out so far. 11.3

Measuring HRM Effectiveness “Cannot manage what you do not measure” Commitment Turnover, loyalty Competence Skills, knowledge, abilities Cost Effective Absenteeism, health and safety, productivity Congruence Agreement between different stakeholders I.e. Union/Employer

Measuring HRM Effectiveness Adaptability Ready for change Performance Profitability, productivity Job Satisfaction Employee satisfaction Employee Motivation Do 11.4